Riordan Manufacturing Service Request

Introduction

Riordan Manufacturing is an international producer of plastics. Employing over 550, the company’s has a projection of $46 million in earnings annually. Their production includes plastic parts, beverage containers, and fan parts. Established in 1991 by Dr. Riordan, the companies’ mission statement is to ensure that it remains an industry leader in the plastic manufacturing business and provide solutions to the existing customer base while expanding. With locations in San Jose, California, Michigan, Georgia, and China Riordan Manufacturing plans to achieve their mission by leveraging technology and innovation to maintain and achieve profitability. This paper will discuss Riordan’s manufacturing process, process flow, and performance metrics. We will also discuss how supplier relationships effects the supply chain , lean production principles, methods of forecasting along with the company’s aggregate production plan, master schedule and material requirement plan.

Manufacturing Strategy

There are three types of manufacturing strategies. These include level, chase, and combination. Riordan follows the level production strategy in regards to the company’s production of electrical fans. This can be concluded due to the company’s practice of setting its production at a fixed rate to meet average demands and its process of using inventory to absorbing fluctuations in product demand. In times of lower demand, excess production is retained as stock, and dispersed during phases of increased demand. According to the company’s website, each December, a physical inventory is completed to determine the amount of completed, raw, and partially assembled materials. Riordan’s choice of using level production is beneficial to the company as it assist in reducing labor costs, increasing the probability of the opportunity to respond to special orders from customers,